The nearer a residential lease in Tenterden gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Tenterden will meet the qualifying criteria; nevertheless a conveyancer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Tenterden with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tenterden can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Tenterden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her basement flat in Tenterden, Natasha started the lease extension process as the 80 year mark was quickly nearing. The transaction was concluded in April 2014. The landlord’s charges were kept to an absolute minimum.
Last September we were phoned by Mr U Watson , who moved into a purpose-built apartment in Tenterden in November 2012. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Tenterden with a long lease were in the region of £245,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2093. Given that there were 68 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
In 2009 we were contacted by Mr Kai Laurent who, having owned a one bedroom flat in Tenterden in January 1996. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Tenterden with an extended lease were in the region of £285,000. The average ground rent payable was £55 billed quarterly. The lease ran out in 2104. Considering the 79 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.